Didier Deschamps' side reached the semi-finals by subduing Morocco 2-0 on Thursday in an impressive display of patience and dominance to set up a clash with either Spain or Belgium, who face each other later on Friday.
"I was a champion (in 2018) and a World Cup runner-up (in 2022) and this team has not achieved anything yet," said Mbappe, who has 20 goals from 20 World Cup appearances - including four in finals.
"It is, however, the one who has the biggest potential. There are so many qualities in this squad, it allows you to dream."
However, the 27-year-old, who leads the goalscoring chart in this edition with eight goals, level with Lionel Messi, insisted that France were not there yet.
"As far as I know, this squad has not won anything yet. I've always said that the strongest teams were the ones who win trophies. It's not the case for this team yet, so no, it's not the strongest," Mbappe added.
France have reached four of the last seven World Cup finals, lifting the trophy in 1998 and 2018, losing in 2006 and 2022. Should they take part in the July 19 showdown in New York, they will sustain the comparison with West Germany, arguably the ultimate tournament nation with four finals between 1974 and 1990.
Mbappe said France needed to keep their feet on the ground.
"We know this team's potential. But we have to show it on the pitch. We're confident, but we still have a lot to prove if we want to be considered as an almost unbeatable team," he said.
France have not conceded a goal in the knockout phase after a group stage that showed some defensive weaknesses and Manu Kone, who has been deputising for the injured Aurelien Tchouameni, was impressive against Morocco.
Up front, it was business as usual, with Mbappe and Dembele providing the goals as France became the first World Cup team with two players scoring at least five goals since Brazil's Ronaldo (eight) and Rivaldo (five) in 2002.
That year, Brazil won the last of their five World Cup titles, and Mbappe knows that should France fail to at least make it to the final, the numbers will mean close to nothing.